Section 236R | No section 236Q relief if disqualifying event in next four tax years ^F1

(1)This section applies where—

(a)a deemed disposal arises in circumstances where paragraphs (a) to (c) of section 236Q(1) are satisfied, and

(b)one or more disqualifying events occur in relation to the disposal in any of the first four tax years following the tax year in which the deemed disposal arises.^F2

(2)No claim for relief under section 236Q may be made in respect of the deemed disposal on or after the day on which the disqualifying event (or, if more than one, the first of them) occurs.

(3)Any claim for relief under section 236Q made in respect of the deemed disposal before that day is revoked, and the chargeable gains and allowable losses of any person for any chargeable period are to be calculated as if that claim had never been made.

(4)Such adjustments must be made in relation to any person, whether by the making of assessments or otherwise, as are required to give effect to subsection (3) (regardless of any limitation on the time within which any adjustment may be made).

(5)“Disqualifying event” is to be construed in accordance with subsections (2), (6) and (7) of section 236O except that—

(a)references in those subsections to the disposal are to be read as references to the deemed disposal, and

(b)in applying sections 236I to 236P and 236T for this purpose—

(i)references in those provisions to the settlement are to be read as references to the acquiring settlement (within the meaning of section 236Q(1)), and

(ii)references in those provisions to C are to be read as references to the company mentioned in section 236Q(1)(b).